QUALCOMM Announces Safeway Stores to Deploy the EutelTRACS Mobile Communications System; Safeway to Integrate Fleet Management System for Increased Productivity.

Business Editors/High-Tech Writers

SAN DIEGO--(BUSINESS WIRE)--June 3, 2002

QUALCOMM Incorporated (Nasdaq: QCOM), the leader in mobile communications for the transportation industry, today announced that Safeway Stores plc, one of the leading grocery retailers in the United Kingdom, has selected QUALCOMM to deploy the EutelTRACS(TM) mobile communications and tracking system throughout its entire fleet. Under the terms of the agreement, QUALCOMM Wireless Business Solutions Europe will provide satellite communications equipment and services to Safeway's nationwide fleet over the EutelTRACS network. EutelTRACS is the service name in Europe for QUALCOMM's OmniTRACS(R) mobile communications system that uses Eutelsat S.A. satellite and network services.

The combination of QUALCOMM's solution and Safeway's Integrated Transport Management System enables Safeway to manage its distribution resources and performance data in real-time. This control will assist Safeway in optimizing fleet utilization, reducing unproductive mileage, improving safety and reducing environmental impact through close scrutiny of both vehicle and driver fuel performance.

"We are excited that Safeway is our first deployment in retail distribution operations in Europe," stated Simon Harris, managing director of QUALCOMM Wireless Business Solutions Europe. "Safeway selected the QUALCOMM solution on the EutelTRACS network because it represents a one-stop-shop for a complete and reliable satellite-based wireless data communications system that can be easily integrated with Safeway's front-office systems."

"Safeway has been at the leading edge of in-cab technology for many years. We already deliver a consistently high level of on-shelf availability to our customers, and by implementing the QUALCOMM solution, we see considerable scope to widen the gap over our competitors," stated Mike Sturt, Safeway's Head of Logistics Development. "By working with QUALCOMM, the market leading supplier of resilient hardware and reliable services, Safeway will continue to develop new and innovative functionality."

Safeway Stores plc is one of the leading grocery retailers in the United Kingdom, with annual sales of around (pound)9 billion, over 92,000 employees and nearly 480 stores nationwide. Safeway's stores cover the United Kingdom from Lerwick in the Shetland Isles to Jersey and from Enniskillen in Northern Ireland to Lowestoft in East Anglia. This large number of stores is unmatched by any of the other major UK food retailers. Safeway attracts around eight million shoppers every week.

QUALCOMM has helped the transportation industry become more efficient since 1988 when the introduction of the OmniTRACS mobile communications system provided transportation companies with an innovative and effective way of managing logistics. Its fleet management solutions continue to set the standard by offering products and services that meet the demands of a constantly changing marketplace. QUALCOMM's OmniTRACS system is a satellite-based mobile communications and tracking system that provides real-time messaging and position reporting between fleets and their operations centres. Messages are sent via satellite through Eutelsat's Network Management Centre to dispatch centres throughout Europe. The EutelTRACS system is an interactive, fully integrated information management system that includes two-way mobile communications, satellite tracking and fleet management software. To date, QUALCOMM has shipped over 425,000 OmniTRACS mobile communications system units worldwide.

QUALCOMM Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on the Company's CDMA digital technology. The Company's business areas include CDMA chipsets and system software; technology licensing; the Binary Runtime Environment for Wireless(TM) (BREW(TM)) applications platform; QChat(TM) push-to-talk technology; Eudora(R) e-mail software; digital cinema systems; and satellite-based systems including portions of the Globalstar(TM) system and wireless fleet management systems, OmniTRACS and OmniExpress(R). QUALCOMM owns patents that are essential to all of the CDMA wireless telecommunications standards that have been adopted or proposed for adoption by standards-setting bodies worldwide. QUALCOMM has licensed its essential CDMA patent portfolio to more than 100 telecommunications equipment manufacturers worldwide. Headquartered in San Diego, Calif., QUALCOMM is included in the S&P 500 Index and traded on The Nasdaq Stock Market(R) under the ticker symbol QCOM.

Except for the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties, including the Company's ability to successfully design and have manufactured significant quantities of its OmniTRACS units on a timely and profitable basis, the extent and speed to which the Company's OmniTRACS products are adopted and changes in economic conditions of the various markets the Company serves, as well as the other risks detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended September 30, 2001, and most recent Form 10-Q.

QUALCOMM, OmniTRACS, OmniExpress and Eudora are registered trademarks of QUALCOMM Incorporated. BREW and QChat are trademarks of QUALCOMM Incorporated. Globalstar is a trademark of Loral QUALCOMM Satellite Services, Incorporated. EutelTRACS is a trademark of Eutelsat. All other trademarks are the property of their respective owners.